Venture Capital: Audio-based Social App Clubhouse Raises Undisclosed Amount Via Series C
According to The Information, the round valued the app at $4 billion.
With three months of its Series B fundraise, audio-based social app Clubhouse announced Sunday its Series C raise (amount not disclosed) from investors including DST Global, Tiger Global, and Elad Gil. Andrew Chen at a16z led the round at a valuation of $4 billion, according to Reuters.
The app features audio chatrooms where people can converse on topics of mutual interest. Founded only in March 2020, the app is still in an “invite-only” mode.
The popularity of the app received a shot in the arm after Elon Musk appeared on it. The pandemic too helped – people staying at home due to the virus fears took to audio chatting for social interaction.
Clubhouse: Use of funds
Clubhouse raised in Series B for growing its user base, scale up its infrastructure and to further support its creators. In a blog, the app confirmed that it has quadrupled the size of its team this year, stabilized infrastructure, launched Payments in beta to help creators monetize, and readied Android for launch.
The latest round is for bringing more people around the world to Clubhouse and to iron out problems from the unexpectedly rapid growth of the app such as servers struggling to cope with the load and outdated algorithms. It recently reported thatit had amassed 10 million users.
“This will allow us to heavily scale our team to support international growth, invest in localization and accessibility features, launch more programs like the Creator First accelerator to help creators get paid, invest deeply in discovery to help people find the best rooms, and continue to scale our support and community health teams,” Clubhouse said in their blog.
Earlier this month, Bloomberg said that Twitter (NYSE: TWTR) had been in talks to acquire Clubhouse in a $4 billion deal, but the talks had fallen through.
Meanwhile, Facebook (NASDAQ: FB) is reportedly going to soon announce a number of “social audio” products that could aim at Clubhouse’s market.
Related Story: Reddit Cashes In On GameStop Publicity; Raises $250M
Image Credit: Flickr
Latest Alternative Investment News
Jeremiah Gordon is General Counsel at CapitalG, Alphabet’s (NASDAQ: GOOGL) independent growth fund which has $3 billion under management. He also leads an Alphabet-wide team focused on investing in Black-led…
Though initial reports said that Colonial Pipeline would not pay a ransom to the hackers that brought the nation’s largest fuel pipeline to a halt, Bloomberg reported Thursday that the…
Artificial Intelligence: A Molecule For Alzheimer’s Created By Exscientia’s AI Enters Clinical Trials
Oxford, UK-based Exscientia uses AI to design and create drug candidate molecules satisfying complex therapeutic requirements with revolutionary efficiency. Joint research by Exscientia with Sumitomo Dainippon Pharma Co., Ltd. (TYO:…
Vinted, a European startup that runs a marketplace for used clothing and home goods, announced its raise of $303 million at a valuation of $4.5 billion, post-money. That valuation is…